COUNTRY GUIDELINES JERSEY

AN OVERVIEW OF EMPLOYING IN GERMANY

Jersey is a Crown Dependency, not part of the UK, with its own independent tax and legal system. It offers a favorable tax environment, including a standard 0% corporate tax rate and a flat 20% personal income tax. While Jersey’s minimum wage and living costs are higher than many parts of the UK, salaries generally align with regions like the South of England. Many companies choose Jersey to benefit from its business-friendly regulations and tax advantages, but genuine local substance is required to establish a
limited company.

1. CURRENCY -
   Both Jersey Pounds (JEP) and British Pounds (GBP) are commonly used in Jersey, but the official local currency is the Jersey Pound (JEP), and its symbol is £.
2. PAY DATE -
   Employers in Jersey are legally required to pay employees at regular intervals, at least once a month, under the Employment (Jersey) Law 2003. 
   While monthly payments are most common, weekly or fortnightly pay is also permitted, especially in sectors like hospitality, construction, or retail. The agreed pay frequency must be clearly stated in the employment contract.
3. MINIMUM WAGE AND ALLOWABLE DEDUCTIONS
   The minimum wage is set at £13.00 per hour. This is the baseline amount that must be paid to employees for each hour worked.
   
   When accommodation is provided as part of an employee’s employment package, a maximum weekly offset of £146.02 can be deducted from their wages. If both accommodation and food are provided, the maximum weekly offset increases to £194.60.
   
   It is important to note that these offsets represent the highest allowable deductions related specifically to accommodation and food. No other benefits, such as utility bills or additional services, may be deducted from the employee’s wages as part of the minimum wage calculation.
4. SOCIAL SECURITY SYSTEM-
   • Employees over school leaving age with a registration card must pay Social Security contributions,which fund pensions, benefits, and health services.
   • Students under 18 earning below the threshold are exempt; those over 18 can claim credits.
   • New employees moving to Jersey must obtain a registration card before starting work.Contribution credits and low-income relief help those unable to pay due to illness, caring,unemployment, or study.
   • Earnings from multiple jobs are combined; temporary work outside Jersey for Jersey employers usually continues contributions.
   • Employees do not have to pay contributions from the month after they start receiving their pension. If employees continue to work, they do not pay primary contributions, but the employer must still pay the secondary contributions.
   • Employees who are in prison or legal custody, who continue to receive a salary from an employer, must pay contributions alongside the employer.
   • Married women married before 1 April 2001 may opt out under specific rules.
   • Both employees and employers contribute based on earnings, subject to limits.
   • Residents liable for income tax also pay a Long-Term Care contribution; others are exempt.
5. HEALTHCARE-
   Jersey’s healthcare is publicly funded and delivered by Health and Care Jersey, which manages hospital services, mental health, social care, and community health.
   
   From 2025, services are fully integrated to improve accessibility, coordination, and patient experience. Elective procedures are prioritised by clinical need under the Elective Access to Treatment Policy, with fair waiting list management and inclusive care.
   
   The government is investing in new healthcare infrastructure, including a hospital at Overdale, and developing a long-term Health and Care Strategy.

Mandatory Contributions 

To fund healthcare and benefits:

• Employees contribute via payroll deductions
• Employers pay additional contributions on employee earnings.
• Long-Term Care contributions are paid by those liable for income tax, supporting care for elderly and disabled individuals.

These contributions are required by law and ensure continued access to Jersey’s public health services.

EMPLOYERS’ COSTS-

 

AN OVERVIEW OF THE MAIN STATUTORY BENEFITS

1. PENSION-
   State Pension (Social Security Pension)
   
   • Contributions to the state pension are mandatory by law for employees over school leaving age with a registration card.
   • Both employees and employers must contribute, with rates based on earnings.
   • Contributions fund the state pension and other Social Security benefits. 
   • Eligibility is based on age and contribution history
   • Once receiving the state pension, employees stop paying primary contributions, but employers must continue secondary contributions if the employee is still working
   
   Workplace and Private Pensions 
   
   • Participation in workplace or private pensions is voluntary. 
   • About 30% of workers are enrolled in voluntary pension schemes.
   • A statutory workplace pension is under review, but no legislation is currently in place.
   • The "Jersey Pension Saver" scheme is being developed, with further details to follow.
     
     
   TopSource Worldwide Pension Scheme 
   
   • State pension contributions are compulsory for eligible employees and employers.
   • Workplace pensions are voluntary, but participation is encouraged
   • There is no maximum contribution limit.
     
     
   Key Points
   
   • We offer a Group Defined Contribution Plan.
   • Minimum contributions are agreed individually and outlined in the offer letter.
   • Reforms may introduce mandatory workplace pensions in the future.
2. SICKNESS
   Employees who are unable to work due to illness or injury may be eligible to receive Short-Term Incapacity Allowance (STIA) from the Social Security Department. This allowance provides financial support during periods of sickness.
   
   • To qualify, employees must submit a medical certificate confirming their inability to work.
   • Payments are made weekly, either directly to the employee or to the employer if authorized.
   • The allowance can be paid for up to 364 days
   • Eligibility depends on the employee who has made sufficient Social Security contributions in previous
     quarters
   • Employers are not legally required to provide additional sick pay beyond this allowance unless stated in the employment contract.

MATERNITY & PATERNITY LEAVE

Parental Leave Policy Summary:

• • Birth mothers are entitled to 6 weeks of paid maternity leave at 100% of
    their salary, which must be taken immediately after childbirth. Additional
    time off may be available under the parental leave entitlement
  • Fathers and partners are entitled to 6 weeks of fully paid paternity leave,
    which must be taken within 12 months of the child’s birth or adoption
  • All parents have a statutory right to up to 52 weeks of parental leave,
    which can be taken in up to three separate blocks over a two-year period.
    The first 6 weeks of parental leave are paid 100% of the salary by the
    employer. In addition, parents may claim up to 32 weeks of parental
    allowance from the States of Jersey Social Security Department. Each
    parent is entitled to 6 weeks of this allowance, with the remaining 20
    weeks available to be shared between them.

Childcare and Family-Friendly Rights:

• • All employees have the right to request flexible working arrangements,
    regardless of the length of service.
  • Employees returning from parental leave are entitled to return to the same
    job under terms no less favorable than before the leave.
  • Protection against discrimination on the grounds of pregnancy, maternity,
    and gender is provided under the Discrimination (Jersey) Law 2013.

Breastfeeding Breaks and Workplace Facilities

• • Employees have the right to paid breaks for breastfeeding and expressing
    milk. This entitlement covers only the time spent breastfeeding or
    expressing, excluding travel time to and from the baby.
  • Employers must provide reasonable workplace facilities for breastfeeding
    employees, including suitable spaces and break times for expressing milk.

Time Off for Antenatal and Adoption Appointments

• • Employees are entitled to attend an unlimited number of antenatal appointments. Up to 10 hours will be paid; any additional time is unpaid. This applies to fathers, partners, surrogate parents, and adoptive parents.
  • Adoptive parents are entitled to similar rights for adoption
    appointments, with the same paid and unpaid time off provisions.

Health and Safety Leave for Pregnant or Breastfeeding

• • Employees Pregnant or breastfeeding employees are entitled to
    paid leave if a workplace risk assessment indicates it is unsafe for
    them to perform their normal duties, and suitable adjustments
    cannot be made.
  
  Note: These entitlements are statutory and must be complied with by all employers in Jersey. Employers are encouraged to familiarize themselves with these provisions to ensure full compliance and to foster a supportive workplace environment.

BEREAVEMENT LEAVE

General Bereavement Leave

There is currently no statutory requirement in Jersey for employers to provide bereavement leave following the loss of a family member (other than a child). However, many employers choose to offer compassionate leave to support employees during difficult times.

As a best practice, it is recommended that:

• • Up to 5 days of paid leave be provided for the death of a close relative
  • Up to 1 day of paid leave be provided for other types of bereavement 
    
    
  Employers are encouraged to apply this policy with understanding and flexibility, recognizing that individual circumstances may vary.

Parental Bereavement Leave (Statutory Right)

Effective 18 March 2024, the Employment (Jersey) Law 2003 provides a statutory right to parental bereavement leave for eligible employees in the event of the death of a child under 18, or a stillbirth after 24 weeks of pregnancy. 

Key entitlements include:

• • Up to 2 weeks of unpaid leave
  • Leave may be taken in up to three separate blocks
  • Leave must be taken within 56 weeks of the child’s death
  • This is a day-one entitlement, with no minimum service requirement
  • Any unused leave may be carried over to a new employer if employment changes within the 56-week period 
    
    

Financial Support

Eligible parents may apply for government-funded bereavement payments to help compensate for lost income during their period of leave. This support is available to both employed and self-employed individuals.

CONTRACTUAL PROVISIONS

Employment Contract

Under the Employment (Jersey) Law 2003, employers must provide all employees with a written statement of employment particulars within 4 weeks of starting work.
Minimum Required Content:

Key entitlements include:

• • Employer and employee names
  • Start date and continuous employment date
  • Job title and place of work 
  • Pay rate and payment intervals
  • Working hours and break arrangements 
  • Holiday entitlement and sick pay 
  • Pension details (if applicable) 
  • Notice periods 
  • Probation terms (if any) 
  • Disciplinary and grievance procedures
  • Relevant collective agreements
  
  Note: - Failure to comply may result in compensation of up to 8 weeks' pay.
  
  

Pre-Employment Medical Examinations

Pre-employment medicals may be required only for roles with identified health and safety risks (e.g. machinery operation, driving, handling hazardous goods) under Article 3 of the Health & Safety at Work (Jersey) Law 1989. These assessments are not mandatory for general roles but may be used where necessary to confirm fitness for duty.

Rules of Registration
The Control of Housing and Work (Jersey) Law 2012 makes it mandatory for anyone aged 16 or over to hold a registration card if they wish to live, work, rent, or buy property in Jersey.

The card indicates an individual’s residential and employment status, which defines what they are legally allowed to do on the island.

Employers must verify registration cards before hiring, pay required workforce charges, and maintain accurate employment and housing records.

Failure to comply can lead to fines, audits, legal action, or loss of business or hiring permissions.

More details are available at: jerseylaw.je/laws/current/l_31_2012

Probationary Period 

Currently, Jersey law does not specify a maximum length for probation periods, but Probationary periods can be extended more than once. These terms are usually agreed upon between the employer and employee and set out in the employment contract.
Although proposals were made to introduce a six-month maximum probation period and restrict extensions, these have not been adopted. Therefore, probation arrangements continue to be determined at the employer’s discretion.

Rest Breaks :

• Employees working 6 hours or more are entitled to a 20-minute break each day (paid or unpaid).
• Employees must have at least 24 hours of uninterrupted rest every 7 days.
• By agreement, this can instead be:
• Two 24-hour breaks over 14 days, or
• One 48-hour break over 14 days.
• The rest period starts at 00:01 on Sunday, unless otherwise agreed.
• A rest day is interrupted if the employee is required to be available for work or attend the workplace.
• If interrupted, compensatory rest must be given within 14 days.

Overtime :

Overtime pay in Jersey is not regulated by law and is typically offered at the discretion of the employer or as outlined in the employment contract or collective agreement. While there is no legal requirement to provide enhanced pay rates (e.g., time and a half), many employers choose to do so as part of their compensation policies.

TERMINATION

1. Ending Employment-
   
   • • Resignation: Employees can resign at any time with written notice. The length of notice and any final payments (like unused holiday) should follow the employment contract.
     • Termination by Employer: Employers must provide a reason for ending employment and follow the applicable law in regard to the process. If dismissed, the employee is entitled to the notice period in
       their contract, or a payment in lieu of notice and any applicable statutory payments.
     • Mutual Agreement: Both parties can agree in writing to end the contract by mutual consent
2. Dismissal -
   • • Written Reasons: Employers must provide written reasons for dismissal within 7 days. Failure to do so may lead to compensation of up to 8 weeks’ pay.
     • Unfair Dismissal: Employees with 2 or more years of continuous service are protected. If a dismissal is found to be unfair, compensation may be awarded up to 36 weeks' pay for longer service.
3. Redundancy
   • • Eligibility: Applies to employees with at least 2 years of continuous service.
     • Payment: One week’s pay for each full year of service, up to a capped amount.
     • Consultation: Employers must consult individually with affected employees. If 12 or more redundancies are proposed at one site within 30 days, a collective consultation with elected employee representatives is also required.
     • Protective Award: If proper consultation is not carried out, affected employees may be awarded up to 9 weeks’ pay.
     • Tax: Redundancy or termination payments are tax-free up to £50,000. Any amount above that may be taxed.
4.  Time Limits 
   
   • • Redundancy claims must be made within 6 months of the termination date. If this deadline is missed, an additional 6 months may be allowed if there is a valid reason.

Note: Fixed-term contract workers may also be eligible for redundancy pay if their contract is not renewed and they meet the required length of service.

Severance Pay
In Jersey, if a dismissal is found to be unfair (but not due to redundancy), the employee may be entitled to a compensatory award determined by the Jersey Employment Tribunal.
There is no severance payment for fair dismissals (outside redundancy). However, in cases of unfair dismissal, compensation may be awarded based on the employee’s length of continuous service.

Note: The awards are subject to Tribunal discretion and may be adjusted based on the circumstances of the case.

HOLIDAY ENTITLEMENT

1. Annual Leave
   
   • • Minimum Leave Entitlement: Employees are entitled to at least 3 weeks of paid annual leave per
       leave year, or more if stated in their contract or agreement. 
     • Leave Year :The leave year may start on a fixed date (e.g., 1 January or 1 April) if specified in an agreement. If not, it begins on the employee’s first day of work and renews on each work anniversary.
     • Pro-Rata Leave for New Starters: If an employee starts work at least 28 days before the end of the
       leave year, they are entitled to pro-rata leave.
   • Example: If the leave year starts on 1 January and the employee starts on 1 June, they receive 7/12 of the full leave. 
     • Rounding Up Leave: Pro-rata holiday must be rounded up to whole days.
       Example: 7/12 of 15 days = 8.75 days, rounded up to 9 days.
2. Annual Leave
   
   • • Untaken Leave: When employment ends, employees are entitled to payment for any unused paid
       leave earned during that leave year.
     • Extra Leave Taken: If an employee has taken more leave than earned, the employer can recover
       payment for the excess leave, unless the contract states otherwise. 
     • Example: An employee with 20 days’ annual leave earns about 1.67 days per month. If they leave on 30 June, they have earned 10 days.
3. If they have used 5 days, they are owed 5 days’ pay.
4. If they have used 15 days, the employer may recover payment for 5 days.

PUBLIC HOLIDAYS

• • Employees get paid leave on Public and Bank Holidays if the holiday falls on their normal working day
  • This includes holidays that fall on Saturdays, but not Sundays, unless the employee is normally scheduled to work on Sundays
  • If an employee is required to work on a Public or Bank Holiday, they must be given a paid day off in lieu, as agreed in their contract or a relevant workplace policy

 

PUBLIC HOLIDAY DATES 2025